Ghana Water Company Limited gets €802,262 tax waiver to improve efficiency

A tax waiver of €802,262 for Ghana Water Company Limited (GWCL), which is expected to increase revenue collection and ensure sustainable potable water services delivery throughout the country, has been approved by parliament.

This was contained in the finance committee’s report on the request for waiver of import duties, import VAT/GETFund Levy, Import NHIL, ECOWAS Levy, EXIM Levy, Special Import levy amounting to Ghana cedi equivalent of eight hundred and two thousand, two hundred and sixty-two euros (€802,262) on project materials and equipment to be imported for implementing the services for the enhancement of nationwide water network management project by the GWCL.

Presenting the report for approval, chairman of the committee, Dr. Mark Assibey-Yeboah, outlined the rationale for the project – which he stated will support GWCL to develop a plan for systematic measurement and reduction of non-revenue water within the service area, among other things.

It is also expected to locate the strategic assets, conditions of the assets, develop applications and remotely manage these assets, increase revenue collection and ensure sustainable potable water services delivery.

The project, he noted, will enable GWCL to properly plan and maintain its systems, improve revenue collection, reduce non-revenue water, and improve public relations support for the company.

Background

As part of efforts to improve service delivery, government is assisting GWCL to procure a Geographic Information System (GIS) in Hydraulic Network Modelling (HNM) Technology.

The project involves the establishment of a GIS for some of the regional offices of GWCL as well as facilitating proper planning and maintenance of the systems, improvement of revenue collection, and public relations support for the company. This will be achieved through the use of modern geo-referenced database information technologies, which will additionally enhance the quality of administration for the company, as well as water service delivery to the general public.

GWCL will also acquire, or possibly develop, digital maps of the regions and demographic data for this project, in addition to all relevant hardware, software and training requirements.

In order to successfully implement this project, government entered into an Export Credit Agreement with UniCredit Bank Austria AG for an amount of eight million euros (€8,000,000) to procure this technology, among other things, for the GWCL to execute a nationwide water network management project. The agreement was approved by parliament in 2017.

The report also indicates the contract agreement for supply, work and services provides that the contract price does not include any taxes, duties, Customs or similar imposts levied in the country of the client. In order to successfully implement this project, there is a need to waive taxes and duties applicable.

It is in this regard that the request for waiver of tax and duties was submitted to parliament in accordance with Article 174 of the 1992 Constitution.